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Types of Accounts in a BankBanking litigation

Table of Contents Definition of Bank Prudential Regulation Account opening procedure Individual v/s Joint Account Types of Deposits Current Account Saving Account Difference between Current and Saving Account Basic Banking Account Minor Account Deceased Account Cash Management Account Dormant Account Collection Account

Definition of Bank

1. Accepting the deposit of money from people.

2. Allowing withdrawal of deposit on demand.

3. Utilization of deposit in financing or investment.

Prudential Regulation To run the banking operations it is mandatory to full fill all the

requirements of prudential regulation

SBP prudential regulation (M-1) Bank and DFI maintain a written

statement of know your customer (KYC) this KYC statement dully

approved by the BOD.

This policy should be applicable when starting new relationship

(new account) and also apply on existing account.

Account opening procedure

Due to the prudential regulation it is mandatory to know your

customer (KYC)

Receiving duly-filled-in account opening form

Obtaining two copies of photograph

Obtaining introduction or reference and following it up

Obtaining specimen signatures

Obtaining mandate

Receiving initial deposit

Individual AccountThe account which is operated by the only one

individual that account is called individual

account.

Joint AccountJoint account is a Bank account shared by

two or more individuals. Any individual who is

a member of the joint account can withdraw

from the account and deposit to it. Usually,

joint accounts are shared between close

relatives or business partners.

Like Bank AL Habib Apna Individual Current Account

The product is primarily focused on individuals looking for a personal account to fulfill all

their modern-day banking needs with convenience and host of free facilities. This may

include employees of large corporate clients, professionals like

teachers/doctors/accountants/engineers, farmers, students and self-employed persons. 

Key Features

No Minimum Balance

Free Exclusive ATM Card

Free Online Banking

Free SMS Alerts (on transactions above Rs. 25,000/-)

Free Pay Orders (upto 3 per month)

Free E-Statement

Free Internet Banking

Types of Deposits

Current Account Current bank account is opened by businessmen who have a higher

number of regular transactions with the bank.

No Profit , No Loss account.

Zakat is not deducted.

Deposited and withdrawn at any time without giving any notice.

Withdrawal from Account

Cheque

Direct Debit

ATM

Saving AccountSavings Accounts are the most

popular kind of individual

accounts for personal purpose of

saving your investments and

getting interest rates. Savings

account provides cheque facility

along with flexibility for deposit

and withdrawal of funds from your

account.

Features of Saving Account Saving account is opened in the name of individuals but also be

opened in the name of Charitable institutions, for provident funds and

pension funds.

Restrictions on withdrawals.

Minimum balance Rs 500- Rs 1000 – this varies with different banks;

Interest on deposit.

No overdraft facility.

Zakat is detected on this account if we not submit the application to

bank for not detection of zakat.

Difference between Current and Saving AccountPoints Current Account Saving Account

Purpose Many transaction To encourage saving

Ideal for Business person Salaried person

Over Draft Allowed Not Allowed

Interest Rates No interest is paid 4% - 6%

Minimum Amount

Higher amount Less amount

Difference between Fixed and Recurring DepositFixed deposit Recurring deposit

Money deposited only once. Money deposited several times.

Can be opened for a short period. It is generally opened for a few

years.

Minimum deposit required is

more.

Minimum deposit required is less.

Higher rate of interest. Slightly lesser rate of interest.

Withdrawal can be done through

surrender of fixed deposit receipt.

Withdrawal can be done through

surrender of pass book.

Basic Banking Account Basic banking account is opened by low income people in Pakistan.

Initial deposit to open a BBA is Rs.1000.

No profit is Paid.

No minimum balance is necessary to maintained .

If account is Nil for continuous 6 month , banker have a right to close it.

Maximum 2 deposit and withdrawals in one month are free of charge .

Free of charge ATM .

Charges detect if use other bank ATM.

Regular banking account can converted into BBA.

Minor Account A specific type of savings account setup for a minor by an adult.

Before the 18 years old a child is not able to enter in a contract.

Nadra not issue the CNIC.

An account in the name of minor is generally initiated and

operated by the guardian .

Example: M. SHAN (Minor)

Ahmed Bukhsh (Guardian)

Deceased AccountA bank account, such as a savings

or checking account, owned by a

deceased person. When a bank

receives notice that a customer

has died, it will freeze his/her

account(s) while waiting for

direction from the authorized

court regarding payment to heirs

and creditors.

Cash Management AccountBank this service provide to the higher profile business customers

Which they can speedily obtained fund from their collection account and

transfer to their main account through a computer module

The module collect and consolidate data collect and consolidate data from

the customer bank account in any location in the country

Example :

BZU can open a cash management account for the collection of fee in any

branch of HBL.

Dormant Account

When there has been no financial activity for a long period of

time, other than posting of interest, an account can be

classified as dormant. After 6 month you can able to deposit

but not able to withdraw.

According to SBP instruction before making the account

become dormant at least a notice to the customer.

Collection Account Account is opened for collection of funds.

Collection account is opened by business customers, charitable

institutions.

Main account is open in any branch of bank and collection of

funds other branches, then funds transfer to main account as

per instruction.